Why class 3 for early years & class 2 for later years?

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ClubMan

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A 63 year old family member received this letter from HMRC setting out what voluntary contributions they can make.

Why are the early years class 3 and the later years class 2? Is this normal?

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Thanks a lot @DannyBoyD.
Sorry if it was answered already but I haven't kept up with all the threads on this as I wasn't expecting it to be relevant to my family.

Just to double check I presume that this is correct.
  1. They should buy all years possible at class 3 and 2 as the return is likely a no brainer for a 63 year old in good health?
  2. If applicable (maybe not here?) they should appeal the class 3 years in case they case they can get class 2?
  3. They should continue to buy (presumably class 3) years going forward as per this thread ?https://www.askaboutmoney.com/threa...-opt-to-move-to-class-3-by-april-2027.244560/
In case it's relevant they have 6 qualifying years paid from their time working in the UK in the late 80s, just in case that impacts any of the above.
 
If she paid all 20 years HMRC have offered her it should be worth a UK state pension of at least £167.50pw. She needs grounds to appeal the Class 3 years, specifically as DannyBoy says, she has to show a record of employment abroad (Ireland and elsewhere) for those years. If, as you says, she was a homemaker for those years then there is no point in appealing.

At least pay the 8 years they have assessed at Class 2 but remember, there is a tight payment deadline for this so you do need to act on it promptly. That will bring her to 14 qualifying years which is worth £92pw
 
Danny, you are right in terms of return.... a payback with 2.5 years of retirement, what is not to like! I just do not fancy paying His Majesty the guts of £1,000 annually into the future unless I had an ample supply of free cash
 
Thanks all. Much appreciated.
jfrank said:
She needs grounds to appeal the Class 3 years, specifically as DannyBoy says, she has to show a record of employment abroad (Ireland and elsewhere) for those years. If, as you says, she was a homemaker for those years then there is no point in appealing.
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I'm not 100% sure but they probably don't have any grounds for appealing the class 3 years. I'll get them to check but told them not to let this delay buying back years.
jfrank said:
At least pay the 8 years they have assessed at Class 2 but remember, there is a tight payment deadline for this so you do need to act on it promptly. That will bring her to 14 qualifying years which is worth £92pw
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Yes, they're on it right now so will hopefully get the payment done this week in time for the deadline next week.
DannyBoyD said:
personally I'd buy as many years as possible, even at class 3 its still a good deal.
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Thanks.
jfrank said:
I just do not fancy paying His Majesty the guts of £1,000 annually into the future unless I had an ample supply of free cash
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The individual here has the money available and especially at 63 it seems like a no brainer. As it probably is even at younger ages.

 
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DannyBoyD said:
personally I'd buy as many years as possible, even at class 3 its still a good deal.
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I get that Danny but I have just under 5 years to go and the thought/capacity to pay £1,000 each year just weighs on me. I will pass and rest content with the £180pw-ish I have secured alrready.
 
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